The Biden administration has proposed a rule maximizing the number of electric vehicle (EV) chargers that can qualify for tax credits.
Prior to the proposed rule, it was unclear whether the tax credits would apply to an entire EV charging station or each individual port that’s part of the charger.
The proposal applies on a per-port basis, meaning companies can claim it multiple times for a charging station that can charge multiple cars at once.
The tax credit is 30 percent off the cost of installing the charger, up to $100,000, for companies. Individuals can also claim the credit for 30 percent of their costs, up to $1,000 per port.
The credit only applies in areas that are either low-income or are not urban.
The tax credits come from the Inflation Reduction Act, the sweeping climate tax and health care law President Biden signed in 2022.
In addition, the proposal upholds a broad definition of what is considered nonurban that the administration put forward earlier this year. Under that definition, credits are available to chargers in places where about two-thirds of Americans live.
“In order to help more Americans go electric, we need to make sure they can charge their EVs where they live, work, and shop – from inner-city neighborhoods to rural areas,” White House adviser John Podesta said in a statement.
“The Inflation Reduction Act is expanding charging access by saving families and businesses up to 30 percent off the cost of installing EV chargers,” he added.
Sen. Joe Manchin (I-W.Va.) a centrist who was one of the law’s main architects, previously criticized the more flexible definition of nonurban areas, saying it “spits in the face of rural America.”
However, a group of 15 Democrats last year urged the Biden administration to adopt a flexible guidance that maximizes eligibility for more chargers.
The current lack of publicly available chargers is a major hurdle toward the widespread adoption of electric vehicles. Many Americans worry they won’t be able to charge their cars while on lengthy trips.
The number of publicly available chargers has doubled since Biden took office, his administration said last month. However, the number of public chargers, which was 192,000, is still short of the 500,000 goal set by the Biden administration for 2030.
